The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Dirt Mountain Racing Total Bikes Biken Bikes 8923,000 $263,000 $ 407,000 $ 253,000 472,000 119,000 196,000 157,000 451,000 144,000 211,000 96,000 Salon Variable nanufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated conton fixed expenses Total fixed expenses Net operating Incone (loan) 70,000 8,700 40,500 20,800 44,200 20,500 7,800 15,900 114,800 40,300 38,300 36,200 184,600 52,600 81,400 50,600 413,600 122,100 168,000 123,500 $ 37, 400 $ 21,900 $ 43,000 $(27,500) "Allocated on the basis of sales dolors. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Required 2